The finance minister has announced a voluntary scraping policy for the auto sector.
Budget 2021: Waiting for this policy for the auto sector was a long time. Now 20 private vehicles and commercial vehicles will not be able to hit the roads after 15 years. This is a very positive news for the auto sector.
- Last Updated:February 2, 2021, 1:10 AM IS
The implementation of the much-awaited vehicle junk policy will give strength to the country’s economy facing sluggishness and decline. The automobile sector will gain momentum as demand for new vehicles increases. Customers will get new vehicles up to 30 percent cheaper. Older vehicles will reduce air pollution by 25 percent. At the same time, large scale employment will be available at scrap centers.
Following this announcement by the Finance Minister, shares of Mahindra & Mahindra, Maruti, Bajaj Auto and Ashok Leyland saw a rise of 2%. A few weeks ago the government approved a new scrap policy, which will come into effect in April 2022.